Sino Europe doesn’t wait Beijing anymore. 320 million in two installments to close AC Milan’s deal

According to the Italian newspaper Il Sole 24 Ore in an article wrote by Carlo Festa, Sino Europe is not going to wait for Beijing’s approval anymore to close AC Milan’s deal. The Chinese group of investors must go ahead with their plan B because the necessary governmental authorizations to export capital abroad that should arrive from the government of Beijing are not ready yet and will not be released by the day of the planned closing in March 2017. In order to solve this financial issue, Sino Europe will pay 320 million euro in two installments by using capital coming from offshore.

Although Il Sole 24 Ore stated that it is not sure that the Chinese investors will use capital coming from the Virgin Islands, the money passed through that remote location.

Photo Antonietta Baldassarre (Insidefoto)

Anyway, Sino Europe is not going to pay for the AC Milan deal with money located in China. In fact, the government of Beijing doesn’t believe that football is a strategic sector for foreign acquisitions anymore. Moreover, Sino Europe is nowadays only considered a financial institution without an industrial plan.

To close the AC Milan deal, the group of Chinese investors is ready to go ahead with their secondary strategy to pay the agreed amount of 520 million euro to Fininvest. At this stage, 200 million were already paid while 320 mln is the necessary amount to go ahead with this negotiation. According to the journalist Carlo Festa, 250 million could be paid the day of the closing (March 3rd). The rest of the money (70 mln) should be paid after the refinancing of the AC Milan debt with Goldman Sachs.

In conclusion, the names of the Chinese investors involved in the AC Milan deal seem to be clearer. Sino Europe’s leader Yonghong Li should be in partnership with Huarong, Industrial Bank, Bank of Guangzhou, and Zheshang Bank.

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